Philip Morris Threatens Australia Over Brand-Less Packaging Plan

SYDNEY Michael Perry – Tobacco giant Philip Morris is threatening to sue the Australian government for possibly billions of dollars over its plan to be the first country to introduce plain, brand-less packaging for cigarettes. The tobacco firm is fearful that plain-packaging will damage its cigarette brands like Marlboro and Alpine and reduce their ability to compete against other brands. The Australian government argues that reducing brand identification will make smoking less attractive and in turn reduce smoking rates and the health costs associated with smoking, which is said by Australian health authorities to kill 15,000 people a year in the country. The fight over cigarette packaging is being closely watched by other tobacco firms and governments, with New Zealand, Canada and Britain among countries considering similar laws. Analysts also say plain packaging would hit tobacco firms in emerging markets where they are seeking to lure smokers away from cheap brands to more expensive ones and, if widespread, could lead to takeovers in the industry to cut costs.